RBA Signals Potential February Rate Cut as Economic Growth Slows

Australia's central bank considers easing monetary policy, citing weaker growth, slowing wage increases, and easing inflation pressures.

The Reserve Bank of Australia (RBA) has hinted at a possible interest rate cut in February 2025, following signs of economic stagnation and easing inflationary pressures.
Minutes from the RBA's December meeting show that wage growth slowed to 3.5%, and GDP growth remained weak at 0.8% for the September quarter.
The International Monetary Fund (IMF) has cautioned against premature monetary easing, warning of risks if inflation progress stalls and urging alignment between fiscal and monetary policies.
Australia's unemployment rate fell to 3.9% in November, but economists warn of potential risks if private sector job creation remains sluggish.
Key economic indicators, including December-quarter inflation data, will be released in January and are expected to influence the RBA's February decision.